Can I get a mortgage to buy and renovate a house in Spain?

Have you found the house you were seeking in Spain, but discovered it needs renovation? Even though it may have seemed like a challenging choice, there are solutions available to assist you. 

Keep reading to learn how to navigate this process if you are in this situation. 

This guide will explore the key factors, and practical steps to make your dream of owning and renovating a home in Spain a reality.

Is it hard to get a mortgage in Spain as a non-resident?

Obtaining a mortgage in Spain as a non-resident is more complex, with challenges such as additional documentation, reduced borrowing limits, and higher interest rates. 

While it's not impossible, the process may require more effort and higher costs if you intend to hire a local lawyer or mortgage broker to assist you as a non-resident.

Can I get a mortgage to buy and renovate a house in Spain?

Yes, obtaining a mortgage in Spain to buy and renovate a house is possible. 

Some Spanish banks, such as UCI, offer specialized mortgage products specifically designed for this purpose. These mortgages cover both the property's purchase price and renovation costs.

This loan is only granted if you purchase a second-hand property.

What renovation mortgage does UCI offer?

UCI offers the Comprayreforma mortgage, which has a maximum term of 30 years and allows you to collaborate with a refurbishment company.

This option covers both the property purchase and up to 30% of the renovation budget, with funds released as the renovation progresses. The renovation budget can be up to 30% of the sale price, with a minimum property purchase of €120,000.

The client must provide proof of a personal contribution of 40% for the risk assessment, which applies to non-residents and second homes. 

For non-residents, the maximum loan-to-value (LTV) ratio at the completion of construction will be 70%.

What should I prepare to get a UCI Spanish mortgage to buy and renovate a house?

To get a UCI Spanish mortgage for buying and renovating a house, you will need to prepare the following documents and information:

1. National ID or passport
2. Foreigners ID - NIE (Número de Identificación de Extranjero)
3. Payslips from the last 3 months (helps in assessing your income stability)
4. Annual tax payments and deductions certificate
5. Last tax return
6. Proof of the main residence
7. Employment contract and withholding certificate
8. Bank statement from the last 6 months (shows your financial stability and spending habits)
9. Savings and investments statements
10. Credit report

Translations are not needed for Spanish, English, French, and German applications.

Keep in mind that a renovation mortgage is a complex product. For a better understanding, contacting UCI is recommended to receive detailed insights addressing your questions.

Is there an easy option to access a Spanish mortgage as a non-resident?

Homevest is a digital platform designed to help non-residents and foreigners easily navigate the world of cross-border mortgages. What makes it even more appealing is that it's completely fee-free, and there are no charges for assistance. 

Homevest connects you with mortgage brokers who compare different options and secure the best terms for your case.

You can easily upload and consolidate all the documents for a Spanish mortgage application in your Homevest account.

Tips to help you get a mortgage to buy and renovate a house in Spain

1. Don't limit yourself to new build areas. The best locations that meet your needs and expectations are often found elsewhere. 
2. Be aware that you may have access to additional finance for refurbishment, which can expand your options and enable you to consider properties that need renovation.
3. UCI offers a grace period of up to 12 months, where you only pay interest until completion. This can ease the financial burden during the renovation process, allowing you to focus on creating your dream home.
4. Speak with a UCI mortgage specialist. They can provide insights into all the available mortgage products and help you customize a plan that aligns with your unique needs, financial situation, and renovation goals.
5. Familiarize yourself with the legalities of buying and renovating property in Spain. This includes zoning laws, building permits, and other regulations that may affect your project.

Sources used and checked in August 2024:

1. UCI renovation mortgage

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.